State Treasurer Loftis: Pension paying too much in fees

South Carolina Treasurer Curtis Loftis

COLUMBIA, S.C. (AP) -- South Carolina Treasurer Curtis Loftis says the state pension system is underperforming and paying too much in fees.

Loftis is to testify Tuesday to a Senate Finance subcommittee. Legislators are looking to reform the pension system to make it more secure. Possibilities include requiring public workers to contribute more of their salary to their retirement benefits.

Loftis says the system should be making more money.

The state's investment portfolio earned an 18 percent rate of return for the fiscal year that ended June 30, not including fees. That compares with a nearly 22 percent median return last year for 91 public pension systems with more than $1 billion in assets.

The vice chairman of the commission that manages the portfolio says contracts require for fees to rise with profits.

(Copyright 2012 by The Associated Press. All Rights Reserved.)